Forwarding this bug from Ubuntu reporter Luciano Santos:
http://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-intel/+bug/981555

[Problem]
This is one of several 0x7... bugs we're seeing in Ubuntu.  This is with the compiz water effect.

[Original Description]
i was trying to use the conpiz effect water

ProblemType: Crash
DistroRelease: Ubuntu 12.04
Package: xserver-xorg-video-intel 2:2.17.0-1ubuntu4
ProcVersionSignature: Ubuntu 3.2.0-23.36-generic 3.2.14
Uname: Linux 3.2.0-23-generic i686
NonfreeKernelModules: wl
.tmp.unity.support.test.0:
 
ApportVersion: 2.0.1-0ubuntu1
Architecture: i386
Chipset: i965gm
CompizPlugins: No value set for `/apps/compiz-1/general/screen0/options/active_plugins'
CompositorRunning: compiz
Date: Fri Apr 13 08:31:48 2012
DistUpgraded: 2012-04-12 23:26:49,008 DEBUG enabling apt cron job
DistroCodename: precise
DistroVariant: ubuntu
DkmsStatus:
 bcmwl, 5.100.82.38+bdcom, 3.0.0-17-generic, i686: installed
 bcmwl, 5.100.82.38+bdcom, 3.2.0-23-generic, i686: installed
 vboxhost, 4.1.12, 3.0.0-17-generic, i686: installed
 vboxhost, 4.1.12, 3.2.0-23-generic, i686: installed
 vboxhost, 4.1.12, 3.2.0-23-generic-pae, i686: installed
DuplicateSignature: [i965gm] GPU lockup  render.IPEHR: 0x79050003 Ubuntu 12.04
ExecutablePath: /usr/share/apport/apport-gpu-error-intel.py
ExtraDebuggingInterest: No
GraphicsCard:
 Intel Corporation Mobile GM965/GL960 Integrated Graphics Controller (primary) [8086:2a02] (rev 0c) (prog-if 00 [VGA controller])
   Subsystem: Hewlett-Packard Company Device [103c:30cd]
   Subsystem: Hewlett-Packard Company Device [103c:30cd]
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release i386 (20111012)
InterpreterPath: /usr/bin/python2.7
MachineType: Hewlett-Packard HP Pavilion dv2700
ProcCmdline: /usr/bin/python /usr/share/apport/apport-gpu-error-intel.py
ProcEnviron:
 
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-23-generic root=UUID=a145333e-a103-422d-8b87-6a052cd915b3 ro quiet splash vt.handoff=7
RelatedPackageVersions:
 xserver-xorg             1:7.6+12ubuntu1
 libdrm2                  2.4.32-1ubuntu1
 xserver-xorg-video-intel 2:2.17.0-1ubuntu4
SourcePackage: xserver-xorg-video-intel
Title: [i965gm] False GPU lockup  render.IPEHR: 0x79050003
UpgradeStatus: Upgraded to precise on 2012-04-13 (1 days ago)
UserGroups:
 
dmi.bios.date: 08/26/2008
dmi.bios.vendor: Phoenix
dmi.bios.version: F.2D
dmi.board.name: 30CD
dmi.board.vendor: Wistron
dmi.board.version: 80.52
dmi.chassis.asset.tag: BRG847F97L
dmi.chassis.type: 10
dmi.chassis.vendor: Hewlett-Packard
dmi.chassis.version: N/A
dmi.modalias: dmi:bvnPhoenix:bvrF.2D:bd08/26/2008:svnHewlett-Packard:pnHPPaviliondv2700:pvrF.2D:rvnWistron:rn30CD:rvr80.52:cvnHewlett-Packard:ct10:cvrN/A:
dmi.product.name: HP Pavilion dv2700
dmi.product.version: F.2D
dmi.sys.vendor: Hewlett-Packard
version.compiz: compiz 1:0.9.7.4-0ubuntu3
version.libdrm2: libdrm2 2.4.32-1ubuntu1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0.2-0ubuntu3
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0.2-0ubuntu3
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu10
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.7.0-0ubuntu1
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20111201+b5534a1-1build2